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a restoration clause which is sometimes called a dilapidations clause can create docHub financial liabilities for your company so its something you should pay close attention to when youre negotiating a lease its not uncommon for this clause to be ignored because people tend to focus on more important things like rental rate lease term and had improvement however when your lease term ends and its time to vacate the premises the restoration obligations can be expensive and complicated so its worthwhile to give it to attention during your lease negotiation you might think the landlord wants to keep that expensive build-out you did but in many cases they dont a restoration clause obligates you the tenant to restore your space to its original condition either completely or in part when you move out so it increases your costs and decreases your flexibility one key problem is that the cost is often more than people anticipate this happens for several reasons the first one is that